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Based on yahoo financial website for 3M,

Part A-Fundamental Valuation: a. Estimate a growth rate for your firms Dividends per Share. b. Assume a 12.5% discount rate. c. Calculate an estimated value of a share of the stock using the constant-growth model Ea. 8 - in the textbook), also known as the Gordon growth model. d. Compare and contrast your valuation results with the current share price in the market. e. Respond to this question: What changes in the variables would be necessary in your valuation to best approximate the market valuation? Part B- Relative Valuation: a. Estimate a growth rate for your firms Earnings per Share (EPS). b. Determine an applicable Price-Earnings (P/E) ratio for your firm in 5 years. c. Calculate an estimated value of a share of the stock in 5 years using the P/E ratio model (Eq. 8-10 in the textbook). Explain. stock? Fxnlain. d. Respond to this question: Would you characterize your stock as undervalued or overvalued? e. Respond to this question: Based on your valuations in parts A and B, would you invest in this
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